HOPES of work re-starting on a flagship Jewellery Quarter development have been crushed after the developer plunged into administration midway through the project.

Property firm Junared, which had begun work on transforming the historic Birmingham Mint building into 186 luxury flats, called in administrator Deloitte after struggling against credit and pre-sales agreements falling through.

The landmark project had been halted six weeks before Christmas, with dozens of contractors owed money, when banks pulled funding. Now, administrators are tasked with finding a buyer for the half-completed mixed-use scheme, which had promised to deliver luxury one, two and three-bedroom apartments and 51,000 sq ft of commercial space.

Community leaders in the Jewellery Quarter say the old Birmingham Mint building, which dates back to 1794 and is known for its 130ft-tall chimney stacks, now looks “terrible” and is in dire need of new investment.

Junared had previously stated on its website that all of the apartments on the Birmingham Mint development had been sold but a spokesperson for Deloitte said “a significant proportion of these pre-sales agreements fell through”.

She said directors of the company were forced to stop work on the development because of falling interest. The groundworks had been completed and administrators are assessing the cost of completing work.

The scheme, on Icknield Street, Hockley, was designed to create a modern living space while preserving Grade I and II-listed features.

Marie Haddleton, president of the Jewellery Quarter Association, said: “This is tragic. I am worried that it puts its listed building status under threat if nothing is done.”